Texas Insurance Code - Section 425.115. Authorized Investments: Equity Interests
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§ 425.115. AUTHORIZED INVESTMENTS: EQUITY
INTERESTS. (a) In this section, "business entity" means a real
estate investment trust, corporation, limited liability company,
association, limited partnership, joint venture, mutual fund,
trust, joint tenancy, or other similar form of business
organization, regardless of whether organized for profit.
(b) Subject to this section, an insurance company may invest
in an equity interest, including common stock, an equity investment
in an investment company other than a money market fund described by
Section 425.123, a real estate investment trust, a limited
partnership interest, a warrant, another right to acquire an equity
interest that is created by the person that owns or would issue the
equity in which the interest is acquired, and an equity interest in
a business entity that is organized under the laws of the United
States, a state of the United States, Canada, or a province or
territory of Canada.
(c) If a market value from a generally recognized source is
not available for an equity interest, the business entity or other
investment in which the interest is acquired must be subject to:
(1) an annual audit by an independent certified public
accountant; or
(2) another method of valuation acceptable to the
commissioner.
(d) An insurance company may not invest in a partnership as
a general partner except through an investment subsidiary.
(e) An insurance company's investments under this section
in a single business entity, other than a money market fund
described by Section 425.123, may not exceed 15 percent of the
company's capital and surplus.
(f) The aggregate amount of an insurance company's
investments under this section may not exceed 25 percent of the
company's assets.
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 425.108 425.109 425.110 425.111 425.112 425.113 425.114 425.115 425.116 425.117 425.118 425.119 425.120 425.121 425.122
Last modified: August 11, 2007
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